General Motors has been sued by the state of Texas, which accuses the automaker of installing technology in more than 14 million vehicles to collect data about drivers, which it then sold to insurers and other companies without drivers’ consent.
Jeff Kowalsky | Bloomberg | Getty Images
General Motors was sued by the state of Texas, which accused the automaker of installing technology in more than 14 million vehicles to collect data about drivers, which it then sold to insurers and other companies without drivers’ consent.
Texas Attorney General Ken Paxton said Tuesday’s lawsuit follows an investigation announced in June into whether several automakers collected and sold large amounts of data without drivers’ knowledge.
Paxton said GM data was used to compile “driving scores” assessing whether more than 1.8 million Texas drivers had “bad” habits such as speeding, braking too quickly, turning too sharply, not using seat belts and driving late at night.
Insurers could then use that data to decide whether to raise premiums, cancel policies or deny coverage, Paxton said.
This technology would have been installed on most GM vehicles starting with the 2015 model year.
Paxton said GM’s practice was for dealers to trick unwitting consumers who had just completed the stressful purchase and lease process into believing that enrolling in its OnStar diagnostic products, which collected the data, was mandatory.
“Companies are using invasive technologies to violate the rights of our citizens in unthinkable ways,” Paxton said in a statement. “Our investigation revealed that General Motors engaged in egregious business practices that violated the privacy of Texans and broke the law. We will hold them accountable.”
GM said in an emailed statement: “We have had discussions with the attorney general’s office and are reviewing the complaint. We share the desire to protect consumer privacy.”
Texas filed its complaint in state court in Montgomery County, near Houston.
It seeks destruction of improperly collected data, compensation for drivers, civil fines and other remedies for violations of Texas’ Deceptive Trade Practices Act.
